Warner Bros. Discovery, Inc. (NASDAQ:WBD) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Warner Bros. Discovery has a consensus analyst rating of "Hold" from 22 brokerages, with an average 1-year price target of about $27.04.
• The stock is being influenced by takeover speculation around the Paramount-WBD deal, but the merger faces multiple antitrust and legal challenges that could delay or block it.
• WBD recently reported a quarterly EPS loss of $1.17, missing estimates, while revenue of $8.89 billion matched expectations and declined slightly year over year.

Warner Bros. Discovery, Inc. (NASDAQ:WBD - Get Free Report) has been assigned an average recommendation of "Hold" from the twenty-two ratings firms that are presently covering the stock, Marketbeat.com reports. Two research analysts have rated the stock with a sell recommendation, thirteen have assigned a hold recommendation, six have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price objective among analysts that have issued a report on the stock in the last year is $27.0417.

A number of research analysts have recently commented on the company. Weiss Ratings lowered Warner Bros. Discovery from a "hold (c-)" rating to a "sell (d-)" rating in a report on Thursday, May 7th. Huber Research upgraded Warner Bros. Discovery from an "underweight" rating to an "overweight" rating in a report on Monday, June 1st. Guggenheim reaffirmed a "neutral" rating on shares of Warner Bros. Discovery in a research report on Thursday, May 7th. KeyCorp reiterated an "overweight" rating on shares of Warner Bros. Discovery in a report on Friday, April 24th. Finally, UBS Group lifted their price target on shares of Warner Bros. Discovery from $30.00 to $31.00 and gave the company a "neutral" rating in a research report on Thursday, May 7th.

More Warner Bros. Discovery News

Here are the key news stories impacting Warner Bros. Discovery this week:

• Positive Sentiment: WBD continues to trade with takeover-related optimism, as Paramount says it still intends to close the deal by the end of September despite the new lawsuits. Paramount still plans to close WBD merger by end of September despite lawsuit
• Neutral Sentiment: The stock has also seen unusually heavy call-option activity, suggesting traders are positioning for continued merger volatility. Paramount Skydance (PSKY) Stock Faces New Risk as 12 States Sue to Block $110 Billion Warner Bros. Deal
• Negative Sentiment: The merger now faces multiple antitrust challenges from state officials and the Writers Guild, which could delay or block the deal and pressure WBD if the takeover premium fades. Hollywood Writers Sue to Block Paramount-Warner Deal

Warner Bros. Discovery Trading Up 1.4%

Shares of NASDAQ:WBD opened at $27.48 on Wednesday. The company has a current ratio of 0.73, a quick ratio of 0.73 and a debt-to-equity ratio of 0.92. The stock has a market capitalization of $68.90 billion, a PE ratio of -39.26 and a beta of 1.54. Warner Bros. Discovery has a 1 year low of $10.76 and a 1 year high of $30.00. The firm has a fifty day moving average price of $26.85 and a 200 day moving average price of $27.52.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last posted its earnings results on Wednesday, May 6th. The company reported ($1.17) earnings per share for the quarter, missing the consensus estimate of ($0.10) by ($1.07). The company had revenue of $8.89 billion for the quarter, compared to the consensus estimate of $8.89 billion. Warner Bros. Discovery had a negative net margin of 4.67% and a negative return on equity of 4.77%. Warner Bros. Discovery's quarterly revenue was down 1.0% on a year-over-year basis. During the same quarter last year, the business earned ($0.18) earnings per share. Analysts expect that Warner Bros. Discovery will post -1.07 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of WBD. Norges Bank bought a new position in shares of Warner Bros. Discovery during the 4th quarter worth about $1,123,807,000. Duquesne Family Office LLC bought a new stake in shares of Warner Bros. Discovery in the second quarter valued at about $74,916,000. Amundi grew its position in Warner Bros. Discovery by 59.6% during the third quarter. Amundi now owns 15,523,538 shares of the company's stock worth $296,189,000 after buying an additional 5,798,592 shares in the last quarter. Marshall Wace LLP acquired a new stake in Warner Bros. Discovery during the third quarter worth about $100,135,000. Finally, Healthcare of Ontario Pension Plan Trust Fund increased its stake in Warner Bros. Discovery by 509.5% during the fourth quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 5,981,814 shares of the company's stock valued at $172,396,000 after acquiring an additional 5,000,437 shares during the period. Institutional investors own 59.95% of the company's stock.

Warner Bros. Discovery Company Profile

Warner Bros. Discovery NASDAQ: WBD is a global media and entertainment company formed when WarnerMedia and Discovery, Inc combined their businesses in 2022. Headquartered in New York City, the company assembles a broad portfolio of film and television production, linear and cable networks, streaming services and consumer distribution operations. Its assets span well-known studio brands, premium scripted and unscripted programming, news and factual entertainment, and licensed franchise properties.

The company's core activities include film and television production and distribution through units such as Warner Bros.

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